Vietnam Insight

US stock futures slip, Nikkei 225 gains 0.85% to 64,621, European stocks rebound, crude oil near $98 per barrel. US stock futures edged lower on Thursday as investors assessed the latest earnings reports from major technology companies Tesla and Meta Platforms. The tech-driven rally on Wednesday, fueled by strong corporate results that reinforced optimism surrounding artificial intelligence, also lost momentum. Nasdaq 100 and S&P 500 futures fell 0.6% and 0.4%, respectively, while Dow futures slipped 0.3%. During Wednesday’s regular session, the Nasdaq Composite advanced 1.05%, supported by upbeat results from SpaceX and Super Micro Computer that renewed confidence in AI demand. Investors are now turning their attention to Thursday’s earnings releases from companies including P&G, Western Digital, and Lockheed Martin. Japan’s Nikkei 225 Index climbed 0.85% to close at 64,621 on Wednesday, recovering from one-month lows as AI-related stocks led the gains. European stocks rebounded on Wednesday after two consecutive sessions of losses, with the Euro Stoxx 50 rising more than 1% and the broader Stoxx 600 gaining less than 1%. Crude oil climbed toward $98 per barrel on Thursday, recouping losses from the previous session after a drone attack on Saudi Aramco’s Shaybah oil field killed two people.

Short-term recovery. The market rose strongly with clear spillover, starting from the real estate group, and liquidity was well above the 20-session average. Within this, the Vingroup stocks VHM, VIC and VRE hit the daily limit-up and contributed about 30 points to today’s gain in the market. Most sectors advanced well. The index is now expected to recover toward the 1,840 area. Support and resistance are 1,680 – 1,840 respectively.

Trading strategy: Investors should look at the headline index only as a reference while the market is heavily driven by the Vingroup stocks. In the short term caution is still warranted, but opportunities remain in several sectors attracting capital, such as Export, Real estate, Industrial park real estate and Retail. Risk-averse investors should favor low-beta, high-dividend, low-debt stocks.

Portfolios: Current holding: TNG, MWG · Watchlist: TCH, HPG, IDC · High-risk names to avoid: NVL, PNJ